Porsche to cut another 5,000 jobs in Germany as profits slump

Porsche will cut a further 5,000 jobs in Germany by the end of 2035 as part of a €2.1 billion ($2.4 billion) restructuring plan aimed at restoring profitability, while guaranteeing no compulsory redundancies during the period.

The Stuttgart-based company said on Monday that the additional cuts will affect the Stuttgart region at Porsche's main production plant in Stuttgart-Zuffenhausen and its research and development centre in nearby Weissach. 

The company and its central works council agreed to extend job security at both sites until the end of 2035, ruling out compulsory redundancies for operational reasons.

The job cuts are to be carried out in a socially responsible manner – primarily through natural staff turnover, retirement, phased early retirement schemes and voluntary termination agreements, Porsche said.

The trade union IG Metall and the employers' association Südwestmetall were both involved in the negotiations. The aim is to strengthen competitiveness whilst safeguarding as many jobs as possible in the long term.

Porsche is one of many German carmakers that have seen profits plunge amid rising costs and heavy competition in the key Chinese market.

The company's so-called "Future Package" provides for investments totalling €2.1 billion to secure future production of Porsche's two-door sports cars in Zuffenhausen while keeping research and development centred in Weissach. 

Employees will also contribute to the cost-cutting programme. Wage increases will be partly deferred until 2035, Christmas bonuses will be reduced, and performance bonuses will be linked more closely to company results. 

Most managers will forgo base salary increases in 2027 and 2028, while employees will be allowed to work from home for a maximum of eight days a month instead of 12.

Second major cost-cutting programme

The announcement follows an earlier restructuring programme agreed in February 2025 that eliminated about 1,900 jobs in the Stuttgart region by 2029, while around 2,000 fixed-term contracts were allowed to expire. 

Porsche has also reduced jobs at its Leipzig plant and is closing three subsidiaries employing about 500 people.

By the end of 2025, Porsche employed around 20,600 people in the Stuttgart region, down from about 22,200 a year earlier. Worldwide, the luxury sports carmaker employed nearly 41,800 people.

The measures come after Porsche's net profit fell 91% to €310 million in 2025, with earnings continuing to decline in the first quarter of 2026.

The company has blamed weak demand in China, US tariffs and slower-than-expected sales of electric vehicles. At the same time, Porsche has incurred billions of euros in additional costs by expanding its range of petrol-powered models after demand for electric cars softened.

Vehicle sales fell 10% in 2025 to around 279,400 vehicles, the lowest level since the Covid-19 pandemic in 2020. Sales in China, once Porsche's largest market, have more than halved between 2021 and 2025.